INDIAN PRINT INDUSTRY –

                  AN OVERVIEW

            SPECIAL EMPHASIS ON

                   PACKAGING
BY:
  RAJAT KUMAR CHAUDHURI
  RANJIT KUMAR SINGH
  RANJIT KUMAR
  RAHUL YADAV
INDIA- Land of Dreams & Diversity


India in the last few yrs of globalization & WTO making inroads into the
country‟s complicated tax laws, infrastructure & import barriers – suddenly
there seems to be huge potential for quality internal consumption.


The fact that there are signs of volume growth; unit manufacturing cost
would be low. Thereby, It would become an alternate, economical, and
quality exporter to the developed countries.

Out of three components of manufacturing business viz. Man, Machine &
Money; Man holds the key to success


30.8% of the Indian population is under the age of 15 yrs, representing
over 368 mn people
INDIAN PRINTING INDUSTRY – GROWTH PATH

o The price & value growth would be high, the consumption level in
  volume terms could also be high.


o Owing to, better yield & lower wastage;
  leading to global benchmarking of quality –                 A
  environmentally safe and efficient
  manufacturing standards, etc……                         high quality,
                                                         Low volume


o The quality expectations of the printers keep
  on increasing, leading to higher average            B- CATEGORY
  prices & better contributions to profit.        Avg. Quality, Avg Volume
  Thereby, assuring good investment in
  research „n‟ development.
                                                        C - CATEGORY
                                                     low quality, high volume
INDIAN PRINTING INDUSTRY

o   The important observation in the printing ink industry is that though the
    volume & value are increasing by 10-15 %, the average price over the
    years does not seem to be increasing.

o   This indicates that the growth potential is coming from the C & B print
    quality segments of the market.

o   The average price per kg of inks in India is significantly lower than that
    of developed markets.

o   This confirms that the consumption of printing inks in India is influenced
    by the C & B print segments.



The Indian Print business is Rs. 16,000/- million US $ industry, of which
Rs. 280/- million US $ is the Printing Ink segment.


                                                                                 Contd....
INDIAN PRINTING INDUSTRY

o India, in the next 5 years is on the path of upgrading its benchmark of
  quality because of the digital technology revolution in pre-press, press
  and post-press.

o This would ensure keeping in tune to consumer‟s preference for quality
  for an ultimate handshake of the printed product locally - globally.

o This could lead to a value growth in the range of 20 -25% against the
  volume growth of 12 -15%.

o This decision to support quality up gradation needs to be taken at the
  level of print buyers & consumers, as the pressure on printing ink
  manufacturers is very high to reduce prices at the cost of quality.

o In other words, while we have prospered in the growth segment; we still
  need to upgrade ourselves from C to B and B to A quality segment.



                                                                             Contd....
GLOBAL PACKAGING CONSUMPTION
            16

            14

            12

            10
Kg/Capita




             8
                                                                        0.3 Kg
             6

             4

             2

             0
                    A SA EU AE A EA A          DA L D       N       PE ES AN IA
                  LI U           EL R  SI RS A EA N NA TI I        O N IR D
                 A         U U O YA                   A HI
                                                 R IL C EN A EXO EUPI
                                            A ANIS                R         IN
            JA N TR           EZ  K LA              A       M C     IP
             PA US          N               C            RG        IL
             A                      A              TH   A     ST PH
                           VE      M
                                                            EA
WORLD STAR AWARD
    WINNERS

Year      2005    2006   2007
                                    ASIA STAR AWARD
India      3      11      9            WINNERS
Germany 8         16     13
Japan     8        11    14     Year        2005   2006 2007
Singapore -         1     -
UK            2     9    6      India        11    22    -
USA         3      7     14
                                Japan         9     7   12
                                Singapore    14    15   16
                                Sri Lanka    11    5     5
                                Thailand     11    9    23
INDIAN PRINTING INDUSTRY

Despite stiff competition globally and locally, growth of Printing Industry is
sure owing to;
o   Increase in disposable income
o   Desire to better the standard of living
o   Opening of new retails outlets & spaces
o   availability of International brands
o Access to ever increasing number of brands across all categories


Forcing Companies to increase Media Ad spend (across different channels-
out door media, On air, Publications, etc…) to capture consumers‟ eyeballs,
arrest their attention; hoping for mind space leading to brand recall
translating into purchase.

                                                                            But….
PRESSURES ON PRINT

Battling for a place in the media mix, like;
o Electronic media
o Rush and time pressure
o Natural “preference for print” eroding – TV viewing time, Internet, etc..
o Combine traditional advantages with new flexibility, speed, quality.


       TECHNOLOGY DRIVING MAJOR TRENDS

o   Faster turnaround
o   Shorter runs
o No more “buy and store”
o And of course...less cost!
o Low inventory levels
DISCONTINUITIES

o   Modernizing nations abandon old pattern of incremental improvements.
o   Modernize all at once
o   Requires a thriving economy and sound competitive strategy
o   India has it all...results beginning to show



                       FOOD FOR THOUGHT

o 6-8 color machines
o Print both sides in one pass
o   Faster sheetfed runs and inroads into web business
o   Depends on fast-drying, non-smearing ink
o   Ink must also remain easily workable
ASIAN PACKAGING INDUSTRY –
                Geographical break down
                               Others
                                8%
   India
                              USD 9 bn
   12%
USD 14 bn



                                             Japan
                                              48%
                                           USD 55 bn
  China
  32%
USD 36 bn



                            Total Size- US $ 114 Billion
ASIAN PACKAGING INDUSTRY –
 Packaging Material break down



        Glass
        12%

Metal              Paper
14%                 34%




         Plastic
          40%




                       Total Size US $ 114 Billion
ASIAN PACKAGING INDUSTRY –
             Sector break down




 Food &                         Pharma
Beverage                         10%
  85%                          USD 11 bn

USD 97 bn
                                Other
                                 5%
                               USD 6 bn




                           Total Size US $ 114 Billion
INDIAN PACKAGING INDUSTRY –
            Packaging Material break down



 Labels
   3%
                    Others
                     14%        Flexible
 Caps &                           22%
Closures
   6%



           Glass
           10%                             Rigid      NO. OF PLAYERS
                                           18%
                                                   LARGE -       40
            Printed Cartons
                  17%         Metal
                                                   MEDIUM -      7,000
                              10%

                                                   ORGANISED-    4,50,000
                                                   SMALL SCALE
POTENTIAL FOR PACKAGING INDUSTRY


             WORLD     Mn. TONS
             RANKING
                                  FOOD PROCESSING
EDIBLE OIL     3        7
                                  INDIA      2%
MILK           1       90

FRUITS         2       47         USA        70%

VEGETABLES         2   90         BRAZIL     70%

SUGAR              1   12
                                  THAILAND   30%
FOOD GRAINS            216
                                  MALAYASIA 83%
INDIAN PRINTING INDUSTRY

o India, in the next 5 years is on the path of upgrading its benchmark of
  quality because of the digital technology revolution in pre-press, press
  and post-press.

o This would ensure keeping in tune to consumer‟s preference for quality
  for an ultimate handshake of the printed product locally - globally.

o This could lead to a value growth in the range of 20 -25% against the
  volume growth of 12 -15%.

o This decision to support quality up gradation needs to be taken at the
  level of print buyers & consumers, as the pressure on printing ink
  manufacturers is very high to reduce prices at the cost of quality.

o In other words, while we have prospered in the growth segment; we still
  need to upgrade ourselves from C to B and B to A quality segment.



                                                                             Contd....
INDIAN PRINTING INDUSTRYCOMPONENT -
                               PUBLICATIONS

o   Out of world‟s 100 largest newspapers India holds 17 newspapers

o   Rise in population & literacy would ensure the continued growth of the
    newspaper industry

o   Huge scope for growth - with 258 million literate adults in India, who
    don‟t read any publication

o   With increased number of publications; readers are exercising choices;
    leading to increased habit of reading 2 newspapers among current
    readers.

VALUE FOR MONEY –
To woo & retain more „n‟ more readers, publication are

     o   increasing the number of pages through supplements
     o   the quality of the pages & printing inks used, no. of colour pages is
         also on the rise.
WORLD PACKAGING INDUSTRY - REGIONWISE
  Population: 6046 mn; Per Capita : USD 75.25; Total Value: USD 455 Billion
                          Rest of Asia:
                          Population: 943.4 mn.(16%)
                          Potential: USD10 bn. (2%)
                          Per Capita: USD 10.6               Americas:
                                                             Population: 827 mn. (14%)
Oceania:                                                     Potential: USD 154 bn. (33%)
Population: 30.2 mn.(0.5%)                                   Per Capita: USD 186.22
Potential: USD 37 bn. (8%)
Per Capita: USD 1225.17


  Japan:
  Population: 126.5mn.(2%)                                     Europe:
  Potential: USD 58 bn. (13%)                                  Population: 1837 mn.(29.5%)
  Per Capita: USD 458.5                                        Potential: USD 140 bn. (31%)
                                                               Per Capita: USD 76.21
        India:
        Population: 1014 mn.(17%)
        Potential: USD 16 bn. (4%)
                                                             China:
        Per Capita: USD 15.78
                                                             Population: 1268.9 mn.(21%)
                                                             Potential: USD 40 bn. (9%)
Americas includes NAFTA & Latin America.                     Per Capita: USD 31.52
Europe includes former Soviet Union, Middle East & Africa.
GLOBAL PACKAGING INDUSTRY –
         Packaging Material break down

                             Others
Glass                          3%
10%
                                        Paper
                                         36%
Metal
17%




          Plastic
           34%              Total Size US $ 455 Billion
ALL INDIA BREAK UP OF PRINTING POTENTIAL BY VALUE




       34%                 22%
                 30%
                                    14%


     North     West      South     East
THANK
YOU,,,,,,

Indian print industry

  • 1.
    INDIAN PRINT INDUSTRY– AN OVERVIEW SPECIAL EMPHASIS ON PACKAGING BY: RAJAT KUMAR CHAUDHURI RANJIT KUMAR SINGH RANJIT KUMAR RAHUL YADAV
  • 2.
    INDIA- Land ofDreams & Diversity India in the last few yrs of globalization & WTO making inroads into the country‟s complicated tax laws, infrastructure & import barriers – suddenly there seems to be huge potential for quality internal consumption. The fact that there are signs of volume growth; unit manufacturing cost would be low. Thereby, It would become an alternate, economical, and quality exporter to the developed countries. Out of three components of manufacturing business viz. Man, Machine & Money; Man holds the key to success 30.8% of the Indian population is under the age of 15 yrs, representing over 368 mn people
  • 3.
    INDIAN PRINTING INDUSTRY– GROWTH PATH o The price & value growth would be high, the consumption level in volume terms could also be high. o Owing to, better yield & lower wastage; leading to global benchmarking of quality – A environmentally safe and efficient manufacturing standards, etc…… high quality, Low volume o The quality expectations of the printers keep on increasing, leading to higher average B- CATEGORY prices & better contributions to profit. Avg. Quality, Avg Volume Thereby, assuring good investment in research „n‟ development. C - CATEGORY low quality, high volume
  • 4.
    INDIAN PRINTING INDUSTRY o The important observation in the printing ink industry is that though the volume & value are increasing by 10-15 %, the average price over the years does not seem to be increasing. o This indicates that the growth potential is coming from the C & B print quality segments of the market. o The average price per kg of inks in India is significantly lower than that of developed markets. o This confirms that the consumption of printing inks in India is influenced by the C & B print segments. The Indian Print business is Rs. 16,000/- million US $ industry, of which Rs. 280/- million US $ is the Printing Ink segment. Contd....
  • 5.
    INDIAN PRINTING INDUSTRY oIndia, in the next 5 years is on the path of upgrading its benchmark of quality because of the digital technology revolution in pre-press, press and post-press. o This would ensure keeping in tune to consumer‟s preference for quality for an ultimate handshake of the printed product locally - globally. o This could lead to a value growth in the range of 20 -25% against the volume growth of 12 -15%. o This decision to support quality up gradation needs to be taken at the level of print buyers & consumers, as the pressure on printing ink manufacturers is very high to reduce prices at the cost of quality. o In other words, while we have prospered in the growth segment; we still need to upgrade ourselves from C to B and B to A quality segment. Contd....
  • 6.
    GLOBAL PACKAGING CONSUMPTION 16 14 12 10 Kg/Capita 8 0.3 Kg 6 4 2 0 A SA EU AE A EA A DA L D N PE ES AN IA LI U EL R SI RS A EA N NA TI I O N IR D A U U O YA A HI R IL C EN A EXO EUPI A ANIS R IN JA N TR EZ K LA A M C IP PA US N C RG IL A A TH A ST PH VE M EA
  • 7.
    WORLD STAR AWARD WINNERS Year 2005 2006 2007 ASIA STAR AWARD India 3 11 9 WINNERS Germany 8 16 13 Japan 8 11 14 Year 2005 2006 2007 Singapore - 1 - UK 2 9 6 India 11 22 - USA 3 7 14 Japan 9 7 12 Singapore 14 15 16 Sri Lanka 11 5 5 Thailand 11 9 23
  • 8.
    INDIAN PRINTING INDUSTRY Despitestiff competition globally and locally, growth of Printing Industry is sure owing to; o Increase in disposable income o Desire to better the standard of living o Opening of new retails outlets & spaces o availability of International brands o Access to ever increasing number of brands across all categories Forcing Companies to increase Media Ad spend (across different channels- out door media, On air, Publications, etc…) to capture consumers‟ eyeballs, arrest their attention; hoping for mind space leading to brand recall translating into purchase. But….
  • 9.
    PRESSURES ON PRINT Battlingfor a place in the media mix, like; o Electronic media o Rush and time pressure o Natural “preference for print” eroding – TV viewing time, Internet, etc.. o Combine traditional advantages with new flexibility, speed, quality. TECHNOLOGY DRIVING MAJOR TRENDS o Faster turnaround o Shorter runs o No more “buy and store” o And of course...less cost! o Low inventory levels
  • 10.
    DISCONTINUITIES o Modernizing nations abandon old pattern of incremental improvements. o Modernize all at once o Requires a thriving economy and sound competitive strategy o India has it all...results beginning to show FOOD FOR THOUGHT o 6-8 color machines o Print both sides in one pass o Faster sheetfed runs and inroads into web business o Depends on fast-drying, non-smearing ink o Ink must also remain easily workable
  • 11.
    ASIAN PACKAGING INDUSTRY– Geographical break down Others 8% India USD 9 bn 12% USD 14 bn Japan 48% USD 55 bn China 32% USD 36 bn Total Size- US $ 114 Billion
  • 12.
    ASIAN PACKAGING INDUSTRY– Packaging Material break down Glass 12% Metal Paper 14% 34% Plastic 40% Total Size US $ 114 Billion
  • 13.
    ASIAN PACKAGING INDUSTRY– Sector break down Food & Pharma Beverage 10% 85% USD 11 bn USD 97 bn Other 5% USD 6 bn Total Size US $ 114 Billion
  • 14.
    INDIAN PACKAGING INDUSTRY– Packaging Material break down Labels 3% Others 14% Flexible Caps & 22% Closures 6% Glass 10% Rigid NO. OF PLAYERS 18% LARGE - 40 Printed Cartons 17% Metal MEDIUM - 7,000 10% ORGANISED- 4,50,000 SMALL SCALE
  • 15.
    POTENTIAL FOR PACKAGINGINDUSTRY WORLD Mn. TONS RANKING FOOD PROCESSING EDIBLE OIL 3 7 INDIA 2% MILK 1 90 FRUITS 2 47 USA 70% VEGETABLES 2 90 BRAZIL 70% SUGAR 1 12 THAILAND 30% FOOD GRAINS 216 MALAYASIA 83%
  • 16.
    INDIAN PRINTING INDUSTRY oIndia, in the next 5 years is on the path of upgrading its benchmark of quality because of the digital technology revolution in pre-press, press and post-press. o This would ensure keeping in tune to consumer‟s preference for quality for an ultimate handshake of the printed product locally - globally. o This could lead to a value growth in the range of 20 -25% against the volume growth of 12 -15%. o This decision to support quality up gradation needs to be taken at the level of print buyers & consumers, as the pressure on printing ink manufacturers is very high to reduce prices at the cost of quality. o In other words, while we have prospered in the growth segment; we still need to upgrade ourselves from C to B and B to A quality segment. Contd....
  • 17.
    INDIAN PRINTING INDUSTRYCOMPONENT- PUBLICATIONS o Out of world‟s 100 largest newspapers India holds 17 newspapers o Rise in population & literacy would ensure the continued growth of the newspaper industry o Huge scope for growth - with 258 million literate adults in India, who don‟t read any publication o With increased number of publications; readers are exercising choices; leading to increased habit of reading 2 newspapers among current readers. VALUE FOR MONEY – To woo & retain more „n‟ more readers, publication are o increasing the number of pages through supplements o the quality of the pages & printing inks used, no. of colour pages is also on the rise.
  • 18.
    WORLD PACKAGING INDUSTRY- REGIONWISE Population: 6046 mn; Per Capita : USD 75.25; Total Value: USD 455 Billion Rest of Asia: Population: 943.4 mn.(16%) Potential: USD10 bn. (2%) Per Capita: USD 10.6 Americas: Population: 827 mn. (14%) Oceania: Potential: USD 154 bn. (33%) Population: 30.2 mn.(0.5%) Per Capita: USD 186.22 Potential: USD 37 bn. (8%) Per Capita: USD 1225.17 Japan: Population: 126.5mn.(2%) Europe: Potential: USD 58 bn. (13%) Population: 1837 mn.(29.5%) Per Capita: USD 458.5 Potential: USD 140 bn. (31%) Per Capita: USD 76.21 India: Population: 1014 mn.(17%) Potential: USD 16 bn. (4%) China: Per Capita: USD 15.78 Population: 1268.9 mn.(21%) Potential: USD 40 bn. (9%) Americas includes NAFTA & Latin America. Per Capita: USD 31.52 Europe includes former Soviet Union, Middle East & Africa.
  • 19.
    GLOBAL PACKAGING INDUSTRY– Packaging Material break down Others Glass 3% 10% Paper 36% Metal 17% Plastic 34% Total Size US $ 455 Billion
  • 20.
    ALL INDIA BREAKUP OF PRINTING POTENTIAL BY VALUE 34% 22% 30% 14% North West South East
  • 21.